Valley National Bancorp
Annual Report 2006

Plain-text annual report

Filings Services March 14,2007 SNL Financial, LC 1-800-969-41 2 1 2 0 0 6 A n n u a l R e p o r t Historical Financial Data Historical Financial Data (1986-2006)" (Dollm-s in millions, except for share data) YEAR TOTAL ASSETS END NET ~ N C O M E DILUTED EARNINGS PEK SHARE ( 7 ) ASSETS RETURN ON RETURN ON AVERAGE AVERAGE DIVIDENDS STOCK SPLITS EQUITY PER SHARE AND DIVIDENDS 2006 $12,395 $163.7 $1.40 I .33% 17.24% $0.85 5/06 - 5% Stock Dividend 2005 12,436 163.4 2004 10,763 154.4 9,873 153.4 1.42 1.41 1.40 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 9,148 154.6 (1) 1.36 8,590 135.2 (2) 1.14 6,426 106.8 1.10 6,360 106.3 (3) 1.04 5,541 5,091 97.3 (4) 1.00 85.0 0.90 4,687 67.5 (5) 0.80 4,586 62.6 (6) 0.72 3,744 3,605 3,357 3,055 2,149 1,97s 1,835 1,663 1,615 59.0 56.4 43.4 31.7 28.6 36.0 34.2 32.1 29.6 0.81 0.78 0.61 0.45 0.42 0.50 0.48 0.46 0.43 1.39 1.51 1.63 1.78 1.68 1.72 1.75 1.82 1.67 1.47 1.40 1.60 1.62 1.36 1.29 1.44 1.92 2.00 2.02 1.99 19.17 22.77 24.21 23.59 19.70 20.28 18.35 I 8.47 18.88 17.23 16.60 20.03 21.42 19.17 15.40 14.54 19.93 20.96 22.95 24.90 0.83 0.81 0.77 0.73 0.69 0.64 0.61 0.55 0.48 0.43 0.41 0.38 0.31 0.27 0.26 0.26 0.25 0.23 0.21 0.1 7 5/05 - 5% Stock Dividend 5/04 - 5% Stock Dividend I 5/03 - 5% Stock Dividend 5/02 - 5:4 Stock Split 5/01 - 5% Stock Dividend 5/00 - 5% Stock Dividend 5/99 - 5% Stock Dividend 5/98 - 5:4 Stock Split 5/97 - 5% Stock Dividend 5/96 - 5% Stock Dividend 5/95 - 5% Stock Dividend 5/94 - 10% Stock Dividend 4/93 - 5:4 Stock Split 4/92 - 312 Stock Split 7/88 - 3:2 Stock Split 5/86 - 3:2 Stock Split All per share amounts have been adjusted retroactively for stock splits and stock dividends during the periods presented. (1) Includes a tax benefit of $8.75 million due to the restructuring of a subsidiary into a REIT. (2) Includes a charge of $7.0 million, net of tax, recorded in connection with the Merchants New York Bancorp, Inc. merger. (3) Includes a charge of $2.2 million, net of tax, recorded in connection with the Ramapo Financial Corp. merger. (4) Includes a charge of $3.2 million, net of tax, recorded in connection with the Wayne Bancorp, Inc. merger. (5) Includes a $3.8 million FDIC SAlF assessment, net of tax. (6) Includes a charge of $5.4 million, net of tax, recorded in connection with the Lakeland First Financial Group, Inc. merger. (7) Beginning in 1997, earnings per share is presented on a diluted basis. * Data for years prior to 2001 exclude Merchants New York Bancorp, Inc.; for years prior to 1999 exclude Ramapo Financial Corp.; for years prior to 1998 exclude Wayne Bancorp, Inc.; for years prior to 1997 exclude Midland Bancorp, Inc.; and for years prior to 1995 exclude Lakeland First Financial Group, Inc. 1 Letter to our Shareholders This was a challenging year for the banking industry and, despite an inverted yield curve, margin decline and fierce price-based com pet it ion, Va I ley con tin ued to produce solid results. We outperformed most of our peers while maintaining the pristine credit quality that has made us a distinguished lender in the financial services industry. Gerald H. Lipkin Chairman of the Board, President & CEO 2 Valley reported net income of $163.7 million for the year ended December 31,2006. share. This marked the 37th time in the last 38 years that Valley increased its dividend The inverted yield curve payout. The Board of from $0.05 per share in 1981 to $0.85 per share in 2006. Valley remains committed to its focused branch expansion contributed to lower loan revenue and higher overall Directors has never reduced plan which targets attractive the regular cash dividend in locations within one hour of funding costs which negatively the bank’s 79-year history and our headquarters in Wayne, impacted net income for 2006. strongly believes that cash New Jersey. Fully diluted earnings per cornmon share were $3.40 for 2006. dividends are an important We celebrated the opening component o f shareholder of nine de novo offices in 2006 value. Valley’s annual dividend and increased our market During 2006, Valley’s Board rate, adjusted for stock splits presence in New Jersey and of Directors issued a five percent and stock dividends, has stock dividend while ixicreasi ng increased on a restated basis the cash dividend to $0.85 per approximately 1,600 percent New York with branches in Ilenville, Keansburg, Paterson, River Vale, Upper Montclair, 2006. . .Year of Expansion Woodbridge and three offices providing the bank with an the ability to apply online for in Manhattan. opportunity to introduce our many consumer loan products Utilizing demographic product lines arid superior and a free online banking research, Vdlcy is positioned to customer service. and bill pay system. The site continue its growth strategy As a way to support Valley’s receives nearly one million to increase our customer base. growing branch network, we “hits” per month. expanded our marlcetiiig and Our Kids First Savings Our expansion strategy is designed to find the most attractive real estate sites to branding cfforts in 2006, We hcightened our advertising enhance our prescnce in neigh- through various media chaiinels boring communities, including to create a broader awareness of Club\M Account continued to SCC strong growth in 2006 and by year-end the number of accounts increased by nearly 20 percent. new markets such as Kings, the Valley brand. As a marketing We experienced a positive Quecns and Rockland Counties. tool, Valley’s newly redesigned response from our Perfect This initiative is consistent website includes comprehensive Checking promotions as well as with Valley’s goal of increasing the value of the franchisc by product and service descriptions. In addition, the website offers our Perfect Switcho, which is a simple, safe and secure service 4 that conveniently transfers a cross-sell opportunities. Innovative financing packages in new customer’s prior banking relationship to Valley. As always, the key to ow retail success relics on our commitment to quality of service and In the competitive middle nearly every industry, including market arena, we have continued techdogy, food service, health- to grow by providing customized care, niatiufacturing, printing, solutions for our commercial clients that are fostered by our telecommunicatioiis and €inance arc also available through VCX. Our Healthcare Division custonier satisfaction. entrepreneurial attitude and Our seasoned Coin tnercial time-tested product knowledge specializes in providing personal- Mortgage Lending Division and understanding of the ized services tailored to meet the continues to cultivate new communities which we serve. needs of the medical community business opportunities in both In addition to our traditional in our market. Our lending its permanent financing and its banking products, we also offer construction portfolios by equipment leasing and financing professionals have designed a suite of services to assist these expanding client relationships, for general aviation through our customers in managing both promoting our services to new subsidiary, Val ley C:ommercial their medical practices and markets and developing Capital, 1,LC (VCC). personal finances. 2006. .Year of Expansion Valley’s Corporate and Government Services team remains focused on providing Valley’s business customers with the most up-to-date tools to effectively manage cash flow, maximize investment income, simplify routine : I u o u n t management tasks and coinbat fraud. These cash management tools includc VNB Connect Plus@ online business banking, which added real-time processing capabilities this year. Additionally, VNR Escrow Plus, Vzilley Lockbox Services, Controlled Disbursements, Payroll Direct 1 - Deposit and Positive Pay/Payee are services that are provided to our corporate and inunicipal customers. Lending to consumers also remains a core business, serving the diverse credit needs of the community. Valley has accorn- plished this by consistently offering a wide array of consumer credit products while avoiding loans that might be decmed to be “predatory” or “high risk”. This has resulted in loail portfolios that have been labeled as “super prime”. Our Consumer Lending Division also expanded its activities beyond Valley’s traditional branch banking footprint, providing mortgage financing throughout the continental United States. Through Valley’s ever-growing family of automobile dealcrs, auto lending continues to grow in volume, as well as geographically with operations currently in four states. Valley is more than a bank that only concerns itself with the bottom line - Valley is an active and responsible neighbor, committed to cotnmuiiity development efforts. We consider 6 it our fundamental responsibility to support deserving causes and organizations wherever we do business. Valley understands the needs of our marketplace because our employees are actively involved in the communities we serve. During 2006, Valley provided financial funding to numerous worthy causes as well as encouraging and supporting employee volunteerisin. We also introduced a new financia literacy initiative designed to teach local students the importance of saving. All of these efforts strengthen our long-term ties to the communities we serve, while reinforcing Valley’s brand identity as a super community bank dedicated to the needs of our neighbors. Looking forward, we remain focused on enhancing our share- holders’ investments, despite many changes in the banking industry. Our asset quality remains strong and our business is located in one of the most dynamic economic geographies in the country. We are focused on strengthening the value of the Valley brand by providing superior customer service, enhanced technology and iiew product offerings. This is the strategy by which Valley has built its foundation and one that will continue to support us in achieving our goals in 200% O n behalf of our Board of Directors, the Valley management team and our valued employees, thank you for your continued support. I I Board of Directors I N M E M O R I A M Spencer B. Witty Dzrector froln 1992-2006 2006 Officers and Directors VA L L EY N AT T o N A L BAN c o R 13 Gerald H. Lipkin Chairman of the Hoard, President & C E O Peter Crocitto Executive Vice Presiderlt Alan D. Eskow, CPA Exerxtizw Vice President, Cbief Financ-id Officer arid Corporate Secretary Albert Engel Executive Vice President James G . Lawrence Executive Vice President Robert M. Meyer Executive Vice Presidertt Jack M. Blackin Senior Vice Presiderzt and Assistant Secretary Wilma Falduto Assistarit Secretary BOARD OF DIRECTORS Andrew B. Abramson Pamela R. Bronander Eric P. Edelstein, CPA Mary J. Steele Guilfoile, CPA H. Dale Hemmerdinger Graham 0. Jones, Esq. Walter H. Jones, 111, Esq. Gerald Korde Michael L. LaRusso Gerald H. Lipkin Robinson Markel, Esq. Robert E. McEntee, CPA Richard S. Miller, Esq. Barnett Rukin John Kay, Emeritus Spencer B. Witty, Emeritus* * Deceased VALLEY NATIONAL BANK OFFICERS Chairman of the Board, President 81 CEO Gerald H. Lipkin Executive Vice Presidents Peter Crocitto Albert Engel James G. Lawrence Robert M. Meyer Executive Vice President, Chief Financial Officer & Corporate Secretary Alan D. Eskow, CPA President, Wealth Management & Insurance Services Robert J. Mulligan First Senior Vice Presidents Carol B. Diesner Kermit R. Dyke Robert E. Farrell Richard P. Garber Eric W. Gould Walter M. Horsting Peter T. Jackey Sheila M. Leary Garret G. Nieuwenhuis John H. Noonan Barbara M. Mohrbutter Bernadette M. Mueller John H. Pro1 Senior Vice Presidents Michael D. Altman Gerald H. Attanasio Jack M. Blackin Manfred A. Brockmann Elizabeth Butler Rosemarie A. Calabro Martin J. Carbotti Charles R. Casser Christopher J. Coiley Frank T. Cosentino Stephen P. Davey Elizabeth E. De Laney Lawrence E. Flack Wayne Fritsch Michael J. Ghabrial Dianne M. Grenz Edward C. Gurskis Dorothy J. Kahlau Jeffrey S. Kramer Leonard S. Levine Daniel McCarty, CPA James K. Moore Russell C. Murawski John J. Murphy, CPA Kenneth W. Nickel Douglas D. Oliver Andrea T. Onorato Marianne Potito Ira D. Robbins Harry A. Rosen Richard A. Schornstein Richard M. Seguine Sandra L. Seville Alfred Sorrentino, Jr. Thomas Sparkes Christopher J. Widdis Senior Vice President & General Counsel Lucinda P. Long, Esq. Senior Vice President & Trust Officer Peter V. Moehle Senior Vice President & Chief Audit Executive Christine K. Baldyga, CPA First Vice President & Controller Mitchell L. Crandell, CPA GLEN RAUCH SECURITIES, INC. Glen R. Rauch, President and CEO HALLMARK CAPITAL MANAGEMENT, INC. Peter S. Hagerman, Presidrnt and (:EO MASTERS COVERAGE CORP. Michael Daniels, Presiderzt and C E O Saul J. Friedland, Execurivc: VP Arthur A. Schwartz, Executive VP MERCHANTS NEW YORK COMMERCIAL CORP. Irwin Schwartz, President NEW CENTURY ASSET MANAGEMENT, INC. Robert C. Kleiber, President and CEO VALLEY COMMERCIAL CAPITAL, LLC Walter M . Horsting, President VALLEY NATIONAL TITLE SERVICES, INC. Joseph A. Perconti, President and CEO VNB LOAN SERVICES INC. Jaennine M. Gonzalez, Presidmt VNB MORTGAGE LOANS, INC. Kimberly Capanna, l-lresident VNB MORTGAGE SERVICES, INC. Albert Engel, President Donna Finck, h r s t Vzcc I-lrcsirjent VNB NY CORP James G. Lawrence, President John H. Prol, First Senior Vice Presiderzt Branch Locations a s o f M a rch 1, 2007 New Jersey A Warren A A A A A Sussex 1 A Pa A A A A A ' A Morris A H u n terdon Somerset A A A' 1 ' A 1 ' A Unio A 'A 1 a A M i dd I esex Mercer New York U n d e r Development N e w Jersey Bergen Hackensack Hudson Jersey City Middlesex Edison North Brunswick-2 Piscataway Monmouth Manalapan Milltown Freehold Somerset Hillsborough N e w Y a r k t Locations g Soon $plete branch listing de back cover 13 Consolidated Statements Financial Condition VALLEY NATIONAL BANNAP 8r SUBSIDIARIES ( i n h ) u s u n d s , except for shore datu) Assets Cash and due from banks Interest bearing deposits with banks Federal funds sold Investment securities: Held to maturity, fair value of $1,090,883 and $1,218,081 in 2006 and 2005, respectively Available for sale Trading securities Total investment securities Loans held for sale Loans Less: Allowance for loan losses Net loans Premises and equipment, net Bank owned life insurance Accrued interest receivable Due from customers on acceptances outstanding Goodwil I Other intanqible assets, net Other asset; Total Assets Liabilities Deposits: Non-interest bearing Interest bearing: Savings, NOW and money market Time Total deposits Short-term borrowings Long-term borrowings Bank acceptances outstandinq Accrued expenses and other liabilities Tota I I i a bi I iti es Commitments and contingencies Shareholders' Equity Preferred stock, no par value, authorized 30,000,000 shares; none issued Common stock, no par value, authorized 173,139,309 shares; issued 1 1 6,890,623 shares in 2006 and 116,985,373 shares in 2005 Surplus Retained earnings Accumulated other comprehensive loss Treasury stock, a t cost (1,533,355 common shares in 2006 and 92,320 common shares in 2005) Total shareholders' equity Total Liabilities and Shareholders' Equity $ 2006 236,354 7,795 75,000 1 , 1 , 08,885 69,981 4,655 2,883,521 4,674 8,331,685 (74,7 1 8) 8,256,967 209,397 189,157 63,356 9,798 181,497 29,858 147,653 $ 12.395.027 Dccernhrr .3 1, 2005 $ 246,119 13,926 - 1,229,190 2,038,894 4,208 3,272,292 3,497 8,130,457 (75J88) 8,055,269 182,739 182,789 57,280 11,314 179,898 37,456 193,523 $ 12.436.102 $ 1,996,237 $ 2,048,218 3,561,807 2,929,607 8,487,651 362,615 2,484,914 9,798 100,459 11.445.437 - 41,212 881,022 97,639 (30,873) 4,026,249 2,495,534 8,570,001 582,575 2,245,570 11,314 94,732 1 1.504.1 92 - 39,302 741,456 177,332 (24,036) (39,410) 949,590 $ 12,395,027 (2,144) 931,910 $ 12,436,102 See the consolduted firiaricid stoteinerits und accotripunyzng notes presented in ltrm 8 of thc Cvnzpirny i SEC l w m IO-U. 14 Income Interest Income Interest and fees on loans Interest and dividends on investment securities: Taxable Tax-exempt Dividends Interest on federal funds sold and other short-term investments Total interest income Interest Expense Interest on deposits: Savings, NOW and money market Time Interest on short-term borrowings Interest on long-term borrowings Total interest expense N e t Interest Income Provision for loan losses N e t Interest Income after Provision for Loan Losses Non-Interest Income Trust and investment services Insurance premiums Service charges on deposit accounts (Losses) gains on securities transactions, net Gains on trading securities, net Fees from loan servicing Gains on sales of loans, net Bank owned life insurance Other Total non-interest income Non-Interest Expense Salary expense Employee benefit expense Net occupancy and equipment expense Amortization of other intangible assets Professional and legal fees Advertising Other Total non-interest expense Income Before Income Taxes Income tax expense N e t Income Earnings Per Common Share: Basic Cash Dividends Declared Per Common Share Weighted Average Number of Common Shares Outstanding: Diluted Basic Di tu ted Years ended ljecember 3 1 , 2005 2004 2006 $ 544,440 $ 461,443 $ 370,921 140,979 11,886 5,896 4,170 707,371 75,822 11 2,654 18,21 I 109,563 31 6,250 391,121 9,270 381,851 7,108 11,074 23,242 (5,464) 1,208 5,970 1,516 8,171 19,239 72,064 109,775 28,592 46,078 8,687 8,878 8,469 39,861 250,340 145,266 12,331 4,800 1,244 625,084 134,274 11,587 1,848 296 51 8,926 55,456 67,601 16,516 87,086 226,659 398,425 4,340 394,085 6,487 11,719 22,382 (46 1) 1,717 7,011 2,108 7,053 15,717 73,733 105,988 26,163 41,694 8,797 9,378 7,535 38,036 237,591 23,115 46,832 5,258 71,402 146,607 372,319 8,003 364,3 16 6,023 13,982 20,242 6,475 2,409 8,010 3,039 6,199 17,943 84,322 99,325 24,465 36,368 8,964 6.388 7,974 36,559 220,043 203,575 39,884 $ 163,691 230,227 66,778 228,595 74,197 $ 163,449 $ 154,398 $ $ 1.40 1.40 0.85 1.43 $ 1.42 0.83 1.42 1.41 0.81 11 6,542,296 114,396,427 108,785,069 117,017,758 114,819,259 109,344,515 See the cousoladated finaiicaal statements and arcomkanyzng notes prescnteci In Itern 8 of the C:ornpany’s SEC Form 2 0-K. 15 Advisory Boards Jzm Sulwio Pontiuc, BIriCk, G M C Craig A. Schultz Schultz Ford, lnc. Robert A. Senior Three County Volkswagen Corp. Peter A. Spina Wuyne Motors, I m . Gary M. Tursi Geurhnrt Chevrolet, Tnc. Central Regional Advisory Board George Bean The George Beun Co. Melvin Cohen flurtdi- Hiit, IHC. Robert D‘Alessandro Welco CGl Gus Tech, LLC Morris Diamond T h DiLmond Agency Phil Forte S m d y Hi11 Suilriirig srrpp1y Co. Stanley Lee Gottlieb Tj7e Diamond Agency Arthur S . Gurtman Consultant Joseph Guttilla Chopper Express Mitchell Herman Service Fabrics, Inc. Charles lnfusino Little Falls Shop-Rite, Tnc. Sanford Kalb Przvate Iniwstor Edna Kanter Possdzc- Clifton llriu- lir-Self System, Inc. Auto Dealer Advisory Board Frederick C. Ayers Ayers Chevrolet Oldswaobzle, Tnc. Steven K. Cooper lack Trebour bord Suzuki Lawrence T. Fette bettp Imports, Inc. Kenneth Gensinger Gensinger Motors Leonard Haiken Prestige Imports, Inc. Lee M. Horner Wymuri Ford, Inr. Stuart Lasser Suturn of flenville, Lzvzrigston 0 M t . Olzve Gerald A Lustig Actira of Denidle Samuel A Magarino Magarzno Ford, Lincobi- Mercury, L L C Renee P. McGuire McCuzre Aiito Group, LT,C Fred J. Meyers Prciikriess Cbevrolet, 1 m . David Nappa Wayne Auto Sales. 1nc.l h Q J t C ) F i Toyotu Eric Nielsen LIovcr ChrysIer Plynzouth, I m Dennis C. Oberle Mahwuh Sales & Servicr, lnc. David Oostdyk Royal Ponliac & Oldsmobzle, lnc. Robert X Robertazzi Liberty Imicoln-Mercu y, Inc. Edward Rossi Rossz C:hevrolet I’ontiac Oldsmobde Buzck GMC, Tnc. James A. Salerno 16 Marc J Lenner Lester M . Fntiii Associutes John E Garippa, Esq. Garzppa, T OLZ 6 Gzaitnuurio Donald Lesser Pziie T esser CT Sons Robert Lieberman All- Wuys Adverliszng C:oniparly Anthony J Marino Century 2 I Construc tzon Corp. Anthony J. Mazzone Innovutzon Datu Processing, Tm.. John V. McGrane McGrane Mortgage Company Frank Misischia FLM Grdphics Jeffrey Moll Considtant Patrick Mucci, Jr. Group Advzso y, Inc. George Poydinecz Developcr Joshua Rabinowitz The, AD1 Group Vincent Riviello Atbntzc Coast Pzbers, LLC Eastern Regional Advisory Board JoAnn Andriola Book CJJevrolet ljuick, lnc. Gilbert Buchalter Phurmucczitzcul Innovattons, Tnr. John F Coffey II, Esq. Attorney-at-Law Francis J. Costenbader, Esq Attorney-at-Liaw Alan Golub Modern Flectrzc Co. Peter A. Goodman Goodmun Sales Ch., Inc. Charles B. Hummel 1 luiiimel Mcrchine & Twl Co. Robert Kuhl J . Kiihl Metals, Tnc. Alan Lambiase Kzvu Terminal Development Co. Joseph LaScala Bell Mzll Construction Co., lric. John J. Martello lohn J . Martello, Inc. Thomas Martin CP Test Services, Inc. Joseph Melone San Carlo Kestaurunt David Newton Newrent, lnc. Joseph Petito Sunset D d i & Lzyiiors Licinio Silva Szlvu & Szlzia, Inc. Maria Silva European Truvd Agency Pasquale P. Tremonte Fultori B i d d ~ z g (yo., Tnc. Richard Tully Keurny Shop-Kite William Van Ness Kin Ness Plustic Molding (20. Jack Kaplowitz Birch Lumber Compuny Charles Cumella bcdco Steel Corporation Carolyn Kessler Kessler Industries, lnc. Andrew Fiore, Jr. AWF I ecrsirag Corporatzon J. Scott Wright Gra/Jhzc MandgSrmcrit, Inc Monmouth Regional Advisory Board Bruce Arbeiter Jupiter Equity Group Carl Bachstadt Hachstadt Tavern Salvatore Barbagallo Monmouth bxcavators, Tnc. Elwood Baxter E. L. Baxtrr Co., Lnc. George Blair Kcttredl~~hrezi,shury Stat(, Baiik Robin Blair Uellenyi Johnson Wagner, Architects Linda Brenner Rici-iardi bamily, T,T,C Dr, Eugene Cheslock RetircJd M. Scott Coleman Contemporary Motor Cars, Inc. John Conti Shore Haven Mobile Home Park Anthony Coppola Alliance Title Agency Terry Daverio Tmcroft Inn, lnc. Robert Devino E. Druino Construction Co. Douglas Douty I ,usty Lohster, lnc. Robert Dykeman Dykeman Associiites Ben Epstein T]fiFll Realty. LLC John Giunco, Esq. Ciordano, Halleran & Czesla James Harkness Retired Jacob Helfrich R. f felfrzch W Son Guy Hembling Charles H . Hemblzng & Sons, lnc. Charles Hockey Pat Keelen 8 Sons, Tnc. Terry lngram Consultant Jack Kay Retired William Kennedy Kennedy Tnsurunce Agemy Frank Luccarelli Dearhorn Farms, Lnc. Judy Martinelly Brokers 3, Tnc. Dennis McKenna Home Mark Honies, Inc. Hon. Edward J. McKenna, Jr McKenna Dupont Hzggins 8 Stone, PC Warren McManus Boynton Benefits Corp. Ron Newel1 Allied Fire and Safety Equipment, Co. Robert O'Neill Spatial Desigii, Ini-. Spiro Pappas Comfort licn Gregory Pfleger ]ohit E Pfleger Funeral H o m ~ , Lnc. Vincent Raine Rubin & Razne, II, Inc. Bruce Robinson Robznson Consulting Group, T,LC Vincent Russo Vincent J . Kusso Kcally Co. Allan Sockol Contemporary Motor Curs, Inc. David Stavola Stamla Companies Charles Straub Slraub Motors, lni-. Alphonso Tomaino Retared J. Robert Warncke Bob Warncke Associates Warren Waters River Development, LLC John Werner Weriiers Ai~tomotiue, Inc. Rudolf Wobito Wobtto Constridction James Wolff Chiropractor Brett Woodward Woodward Constructton Co. New York Regional Advisory Board Joseph Abergel TomarklSatex Peter Baum Batrm Bros. lwiports, liic. Stanley Blum Rliim 6 Fink, Inc. Edward Blumenfeld Blinmenfeld Development Group, IAd. Arthur Fefferman AFC Realty Captlal, lnc. Jack Forgash Tri-Realty Muiiugement Corp. Fredric H. Gould C h i l d Investors Rudolf H. Hertz Collsultarlt Steven U. Leitner, Esq. A ttorney-at-Law William Lerner lrriperiul Purking Systems, Lnc. Nathan Lubow Consultant Sara L. Mayes Gemini Shippers Group Alan Mirken Anron Publishing Group Mitchell Nelson, Esq. Wurshazu, Burstein, Cohen, Schlesinger & IZuh, LLL' Joel I. Picket Gothum Organization, Inc. Mark Rachesky MHK FundManagement Compaizy Harvey Ravner Priuate Inucstor Suresh L. Sani First Pioneer Properties Leonard Schlussel Welbilt Equipment Corporation Charles I. Silberman S. Parker Hardware Manufacturing Corp. Marcia Toledano 990 AvAmericas Associates John Usdan Midwood Maniigemerlt corp. Northern Regional Advisory Board Donald Aronson l h n a l d Aronson Consulting Growp Peter D. Brown South Reach Company Robert Israel Kentshire Galleries, Ltd. Donald N. Dinallo Terminal Construction Corp. Peter Jakobson, Jr. Takobson Properties, LLC Bernard Dorfman, Esq Attorney-at- Law Advisory Boards Northern Regional Advisory Board (cont.) Southern Regional Advisory Board Steven Dickman Dicktiran Busmess Brokprs Judith Greenberg TTeritage Managetnent Co. Arthur Joseph Krass-Joseph. h e . Robert W. Landzettel 1,axon Puzrit & Wallpaper Co. Burton Lerner Tenuvzsion, Tnc. Larry Levy, Esq Marcm & Leuy Stewart C. Libes Consultunt Anthony F. Marangi CDM 400 Enterprises Roy G . Meyer C:onsultant John Nakashian H. H. Nakrrshaan & Sons Hal Parnes The L’urnes Compnny Richard Pearson Fleet Equipment Co. James R. Poole North Marg Capital Audrey Rabinowitz Plaza Research David Rabinowitz Plaza Research Lawrence Schwartz Apex F o o t Health Services, lnc. Alan Braunstein Worldwide Wholesale bloor Coverings, Lnc. Bernard Burkhoff The Real Estate Iniwstmeiit Croup William Cohen Go-Lightly Cmdy Conzpariy Anthony Costa R estaurantew Jack Felicio R h o ~ i b u s Software, Tnc. Gerald B. Green Consultant Steven R Gross Metro lnsurunce Services, lnc. Kenneth Jayson luyson Oil Company Herbert Lefkowitz Consolzdated Siwioii I)istribictnrs, Inc. Seymour Litwin Prudentid I’zoneer R e d hstute Lawrence J. Massaro Lordina B~dders, Tnc. Anthony Sa Sa & Sons Construction co., Inc. Barry Segal Bradco Supply Corp. Marvin H. Strauss Newark Chapter S e r u m Corps of‘ Retired Executws Albert Skoglund f7iller & Skoglund, Lnc. Marvin Van Dyk Van Dyk Health Cure, lnc. Sanford C Vogel Vogel & Gast Western Regional Advisory Board George Dominguez Sunrise House bounhtiori, lnc. Jeffrey Birnberg J. Htmberg & Associates, l,l,C Patrick D‘Angola P M D Consultah, lnc. Gerhardt Drechsel Eugle American Realty, lnc. James Demetrakis, Esq. Attorney-at- I,aw Paul Dunajchuk Koxbury Water Co. Gene Fey1 Consultmt Alan Goldstein, Esq. Nussbcruni, Stem, Chldslern, Hronstezn 8 Kron John Grabovitz Koxbury Enterpriscs, LLC George Hagemeister Consultant Jackie Harrison Center for Hirmawlzc Change Willard Hedden Consultant Joseph Kubert loe Kubert School of Cartoon 8 Grirphic Art, Tnc. William H. McNear McNear Lxcuziutzng, lnc. Kathleen Medore Nationcrl Fruit & Essences, Inc. Ronald Petillo 1’t)tillo Enterpnses, lnc. Roy Solondz Koxbury Mortgage (h., In(.. Stella Visaggio Hackettsloiun Conimunily Hospital West Essex Regional Advisory Board Kenneth Elkin Strrnrnit Stainless Steel, 1 , I L George J. Fiore R e d Estatp Eiiuzronmentd Insurance Consultant George Gellert Atlant C h p . Jay Gerish I. Gerzsh, In(-. Donald Gottheimer L ) & B Wholesale, Cosmetics, lnc. Steven Katz Sterling Properties Group Frank Kobola Kobidrn Investrneiits Jan Kokes The Kokes Cjrgunizalion Richard Mandel bau m M a ~ i d e 1 1 ) a ~ ~ a & Mundelhaum lnuestors Solomon Masters E R A Masters Realty Charles Moss, Jr. Boau-Tir Building Times SqiiarP Steven Nussbaum l’b Pusbjerg Developwicnt Co. Lawrence Pantirer HNE Associates Lawrence Rappaport, Esq. Attorney-at- Law Arthur M. Weis Cupiritec, lnc. Albert Burlando Alrmtek Industries, Tnc. Bernie Adler Adler L>ezielopinent Robert Ringley Ber Plastics. Lnc. Charles M. Carella, Esq. C~~rella, Byrrae, Eain, Gilfillara, Cecchi, Stewart 6 Olstein Milton E. Kahn, CPA Amper, Politzincr C’Y Mattia, P.A . Stacey Rudbart JB Hunauer 8. (h. Mort Salkind Fox Developnzent Ben Sher Consultant Arnold Speert William Paterson Uriiversity Richard Ullman Nrrtioraal Vision Administrators Salvatore Valente B ildisco Manufacturing co., lnc. Eric Witmondt Woodrnont Properties, LLC Professionals Group Advisory Council (PGAC) Anne E. Aronovitch, Esq. cozlghlin D u f y , L,l>P Fredric F. Azrak, Esq. Azruk & Associates, LIX: Frank A. Carlet, Esq. Corlet, Garrison, Klein & Zaretsky, L,. L.1: Barry A. Cohen, Esq. Gelman Gelwzun Wiskow & McCdrthy, L1,C Frederick L. Cohen, CPA Cohen, Friedman, Dornaim, Lecn & Co. Jonathan T. K. Cohen, Esq. Law Officcs of / o m t h a n TK. Cohen, 1’C Ralph A. Contini, CPA Rolph A. Coritini, CPA, LLC Roger J. Desiderio, Esq. Bendit Weinstock, 1-1 A. John D. Fanburg, Esq. WolfRlock Bruch Eichlor Gary R, Feitlin, Esq. Feitlin, Youngman, Kanzs & Youngman, TLC Spiros Backos, CPA Backos t+ Associates, PC Ted M. Felix, CPA Lazar J,evine C;. Fdix LlJ’ Joseph L. Basralian, Esq. Winne, Bantu, Hetherington, Basralian 6 Kahn, P.C. Thomas J. Benedetti, Esq. Viola, B e n e d d & Az.zolini, LLC Gary D. Bennett, Esq. Koch Koch & Reiirtett Robert J. Blackwell, CPA Levine Jacobs & Company, L. L. c:. Leonard Boxer, Esq. Stroock Stroock 6 Lava?z, / > L P Robert A. Fodera, CPA Meiser, L LP Michael A. Gallo, Esq. Schcnck, IJricp, Smith & King, LLP Saverio (Sam) R. Garruto, CPA J.H. Cohn L I T John A. Giunco, Esq. Giordano, Hallerarz & Cicslu, P. c. Alan D. Goldstein, Esq. Nusbmm Stein Goldstein Bronsteiri t9 K r t i n , P.A. Ralph Heiman, CPA Sux Macy Fromna & Co., PC Joseph W. Boyle, CPA Meisel, Tuteur 6 Lewis, P.C. Milton Brown, PA Peter R. Herman, Esq. Wilentz, Goldman & Spitzer 1’. A. Nicholas San Filippo, IV, Esq. Imwenstein Sandler, PC Martin Sarver, Esq. Simon, Suruer, Swetz t9 Juachts, LJ,C: Theodore E. Schiller, Esq. Schiller & Pittenger, P. C. Mark W. Schlussel, Esq. Zeichner Ellirtan 6 Krrluse LlJ’ Allan Starr, Esq. Starr Associates 1,LP David A. Sussman, Esq. Duy 1’itm:y LLP William S. Taylor, Esq. Richard H. Weisinger, Esq. Roberta S. Weisinger, Esq. Morris Yamner, Esq. Sills Curnmis Epsteiiz t5 Gross P. C. Leo J. Zatta, CPA Wiss & Company, LLP CRA Advisory Committee Allan Lamboy Nonprofit Finance Fund Barbara Dunn Paterson Habitdt for Humanity The Reverend Dr. Elizabeth S. Hall Howeless Solartioras, Ins-. Timothy J. King, CPA Bederson ci. Company LJJ’ Herbert C. Klein, Esq. Nowell Arnoroso KltJir? Birrnzan, P C Frank V. Lloyd, Esq* Harzuood Lloyd., /,LC Saul Lupin, CPA Snzolin, T,upin & Co., P.A. Barry R. Mandelbaum, Esq. M u d h m n , Salsbtirg, Gold, Lazris, Disrciaza Irf- Steintierg Robert C. Masessa, Esq. MLISESSU & Cluff Michael McLafferty, CPA Amper, Politziner & Mattia, PA. Alan Merker, CPA Morris Merker & Co., L.L.C. Bruce Nadler, CPA M.S. Ackerman & Co. LJ, P Dilip S . Patel, CPA Dilip Patel t+ Company, LL,P Joseph C. Perconti, Esq. Perconti 6 Cook Jonathan Perelman, CPA Friedwzan L I , P Barry W. Pierce, CPA Wiihi~rrzSinith+Brown Carole 6. Pierce, CPA Stephen A. Ploscowe, Esq. Fox Rothschild J,LP Wayne J. Positan, Esq. Lum, 1)rmcc) & Positan I,LC Richard Puzo, CPA 1.H. Cohn L1,P Christopher Kui Asian Ainericans for Equality Beverly M. Riddick Honies of Montcluir Ecumenicd Core ( H O M E Corp) Kenneth Lowell Rose, Esq. Ira Rosenbloom, CPA 1.H. Cohn LLP Victoria E. Taylor Martin Luther King, JY. Senior Center 19 Shareholder Relations Corporate Address Valley National Bancorp 1455 Valley Road Wayne, New Jersey 07470 (973) 305-8800 Stock Listing Valley National Bancorp common stock is traded on the New York Stock Exchange under the symbol VLY. Annual Meeting April 11,2007 2:OO PM Form 10-K Persons may obtain a copy of Valley National Bancorp’s 2006 Annual Report or Form 10-K by submitting a request in writing to: Dianne M. Grenr Senior Vice President Director of Shareholder & Public Relations Valley National Bancorp 1455 Valley Road Wayne, New Jersey 07470 dgrenz@valleynationalbank.com Crowne Plaza Fairfield (formerly Prime Hotel & Suites) 690 Route 46 East Fairfield, NJ 07004 Financial Information investors, security analysts and others seeking financial information should submit a request in writing to: Alan D. Eskow Executive Vice President, Chief Financial Officer & Corporate Secretary Valley National Bancorp 1455 Valley Road Wayne, New Jersey 07470 Shareholder Inquiries, Dividend Reinvestment Plan, and Registrar and Transfer Agent For information regarding share accounts of common stock or Valley’s Dividend Reinvestment Plan, please contact the Registrar and Transfer Agent or Valley National Bancorp: American Stock Transfer & Trust Company 59 Maiden Lane New York, New York 10038 Attn: Shareholder Relations Dept. (800) 937-5449 Dividend Reinvestment Plan (800) 278-4353 Valley National Bancorp Attn: Shareholders Relations Dept. (800) 522-41 00, ext. 3380 (973) 305-3380 20 Roselle Park 1 Westfield Avenue Scotch Plains 1922 Westfield Avenue Springfield 223 Mountain Avenue Union 1432 Morris Avenue 2784 Morris Avenue Westf i e Id 801 Central Avenue Warren Belvidere 540 Route 51 9, Suite 9 Blairstown 152 Route 94 Hackettstown 105 Mill Street N e w York Brooklyn 61 17 18th Avenue Manhattan 62 West 47th Street 90 Franklin Street 93 Canal Street 170 Hudson Street 275 Madison Avenue 295 Fifth Avenue 434 Broadway 776 Avenue of the Americas 924 Broadway 1040 Sixth Avenue 1328 Second Avenue 1569 Third Avenue Branch Locations as of March 1, 2007 N e w Jersey Bergen Bogota 325 Palisade Avenue Edgewater 46 Promenade, City Place Elmwood Park 80 Broadway Englewood 41-43 Palisade Avenue 80 West Street Fair Lawn 139 Lincoln Avenue 20-24 Fair- Lawn Avenue 3 7-00 Broadway Fort Lee 1372 Palisade Avenue 2160 Lernoine Avenue 2180 Lemoine Avenue Hackensack 3 University Plaza Hillsdale 24 Broadway Ho-Ho-Kus 18 Sycamore Avenue Lodi 147 Main Street Ly nd hu rst 456 Valley Brook Avenue Midland Park 207 Franklin Avenue Montvale 24 South Kinderkarnack Road Moonachie 199 Moonachie Road New Milford 243 Main Street North Arlington 629 Ridge Road Northvale 151 Paris Avenue Oakland 350 Rarnapo Valley Road Oradell 350 Kinderkarnack Road Paramus 80 East Ridgewood Avenue East 58 Midland Avenue Route 4 & Forest Avenue Ramsey 10 South Franklin Turnpike Ridgefield 868 Broad Avenue Ridgewood 103 Franklin Avenue River Vale 670 Westwood Avenue Rochelle Park 405 Rochelle Avenue Tenafly 85 County Road Waldwick 67 Franklin Turnpike Wyckoff 356 Franklin Avenue Essex Belleville 22 Bloomfield Avenue 237 Washington Avenue 381 Franklin Avenue Bloomfield 1422 Broad Street 548 Broad Street Caldwell 15 Roseland Avenue 307 Bloomfield Avenue Cedar Grove 491 Pompton Avenue Fairfield 167 Fairfield Road One Passaic Avenue Livingston 73 South Livingston Avenue 270 South Livingston Avenue 531 South Livingston Avenue 66 West Mount Pleasant Avenue Maplewood 142 Maplewood Avenue 740 lrvington Avenue Millburn 181 Millburn Avenue Newark 167 Bloomfield Avenue 289 Ferry Street 784 Mount Prospect Avenue Nutley 171 River Road 371 Franklin Avenue South Orange 11 0 Irvington Avenue 115 Valley Street Up er Montclair 52FValley Road West Caldwell 1059 Bloomfield Avenue West Orange 637 Eagle Rock Avenue Hudson Bayonne 522 Broadway East Newark 710 North 4th Street at Bridge Harrison 433 Harrison Avenue Hoboken 305 River Street Jersey City 44 Essex Street Kearny 256 Kearny Avenue 72-80 Midland Avenue 100 Central Avenue North Bergen 8901 Kennedy Boulevard Secaucus 40 Meadowlands Parkway Union City 4405 Bergenline Avenue West New York 5712 Bergenline Avenue Middlesex South Plainfield 100 Durham Avenue Woodbridge 540 Rahway Avenue Monmouth Atlantic Highlarlds 1 Bayshore Plaza Highlands 301 Shore Drive Holmdel 2124 Highway 35 South Keansburg ,201 Main Street Keyport 416 Broad Street Route 36 East Lincroft 616 Newman Springs Road Little Silver 140 Markham Place Middletown 850 Highway 35 South 760 Highway 35 South a t Twinbrook Avenue Oakhurst 777 West Park Avenue Red Bank 74 Broad Street 362 Broad Street Sea Bright 1 1 73 Ocean Avenue Shrewsbury 465 Broad Street Morris Budd Lake 202 Route 46 & Mount Olive Road 342 Route 46 West Butler Meadtown Shopping Center Chatham 375 Main Street Chester 2 Main Street Denville 6 Bloomfield Avenue Dover 100 East Rlackwell Street East Hanover 240 Route 10 West & Murray Road Florham Park 30 Columbia Turnpike 187 Columbia 'Rimpike Jefferson Township 715 Route 15 South Landing 1 15 Center Street Madison 12 Main Street Mine Hill 271-273 Route 46 West Morris Plains 51 Gibraltar Drive Morristown 10 Madison Avenue Parsippany 120 Baldwin Road 800 Route 46 West Succasunna 250 Route 10 West Whippany 54 Whippany Road Passaic Clifton 6 Main Avenue 505 Allwood Road 925 Allwood Road 1006 Route 46 West Little Falls 171 Browertown Road North Haledon 475 High Mountain Road 5 Sicomac Road Passaic 128 Market Street 21 1 Main Avenue 6 15 Main Avenue 506 Van Houten Avenue 545 Paulison Avenue Paterson 490 Chamberlain Avenue Pompton Lakes 516 Wanaque Avenue Wayne 64 Mountain View Boulevard 200 Black Oak Ridge Road 1200 Preakness Avenue 1345 Willowbrook Mall, Main Mall Entrance 1400 Valley Road 1445 Valley Road 1445 Route 23 South 1504 Route 23 North 1501 Hamburg Turnpike Somerset Bound Brook 466 West Union Avenue Green Brook 302-306 Route 22 West North Plainfield 1334 Route 22 East 672-6 Somerset Street Sussex Branchville Branchville Square Franklin 288 Route 23 North Fredon 410 Route 94 at W/llows Road Sparta 7 Woodport Road Tranquility Route 517 at Kennedy Road Vernon 538 Route 515 Union Clark 74 Central Avenue Cranford 11 7 South Avenue West Hillside 1300 Liberty Avenue Mountainside 882 Mountain Avenue 1455 Valley Road Wayne, NJ 07470 973-305-3380 www.valleynationa1 ban k.com B 2007 Valley National Bank. Member FDIC. 

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